Danger Zone Tool

Martingale Risk Simulator

See exactly how fast the Martingale strategy (doubling your position size after a loss) will blow your prop firm account.

Account Parameters

Account Size ($)

Max Drawdown (%)

Initial Lot Size

Stop Loss (Pips)

Martingale Multiplier

Pip Value ($)

Set parameters and click Simulate to see exponential drawdown.

Why is Martingale banned by prop firms?

Martingale is a strategy where you double your trade size after every loss, attempting to recover all previous losses with a single win. While it looks mathematically sound if you have infinite capital, no trader has infinite capital.

In prop trading, you are constrained by the Maximum Drawdown Limit (usually 8% - 10%). Because lot sizes increase exponentially, it only takes a short losing streak (usually 5 to 7 trades) to completely blow the account. Prop firms consider this gambling, not trading, and most will ban you for using it, even if you pass the challenge.